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The affirmation algorithm

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WHAT WE’RE TRACKING TONIGHT

Inflation rises again in May to 16.8%

Good afternoon, friends, and a very happy Eid to you all.

**A QUICK PROGRAMMING NOTE- EnterprisePM is taking a publication holiday in observance of Eid and will be back in your inboxes on Tuesday afternoon. The Weekend Edition will also be on hiatus, and will return next week at the usual time.

THE BIG STORY TODAY-

Annual headline urban inflation rose for the third month running in May to 16.8%, marking a 2.9 percentage point jump from the 13.9% recorded in April, according to data from state statistics agency Capmas. On a monthly basis, inflation rose by 0.6 percentage points to 1.9%.

Driving the trend: Food and beverage price inflation, the largest component of the basket of goods and services used to calculate headline inflation, rose 5.0 percentage points to 11.0% in May.

What about core inflation? Annual core inflation — which excludes volatile items like food and fuel — quickened to 13.1% in May from 10.4% in April, according to data from the Central Bank of Egypt. On a monthly basis, core inflation stood at 1.6% in May, compared with 1.2% a month earlier.

May's inflation reading came in above forecasts, including the central bank's recentprojection that price growth would continue to decline throughout the year, banking expert Mohamed Abdel Aal told EnterpriseAM. The rise in urban inflation “doesn't signal a long-term impact that would necessitate a return to monetary tightening or hint at a new, extended inflationary wave,” Abdel Aal suggested. Instead, he attributed the rise primarily to seasonal increases in food commodity prices and the lingering cumulative effect of fuel price hikes. Analysts we spoke to earlier this week saw annual inflation rising to 14.2-15.25% and expected monthly inflation to drop.

THE BIG STORY ABROAD-

US tariffs are back in the spotlight after US President Donald Trump’s order to double levies on steel and aluminum to 50% came into effect on Wednesday. The increase, which Trump announced last week and signed on Tuesday, is intensifying trade tensions as the US presses its trading partners to submit their “best offers” ahead of a 9 July deadline or face higher tariff rates if no agreements are reached. “The golden age is here,” the White House said on X following the sign off. The move will “provide greater support to these industries and reduce or eliminate the national security threat posed by imports,” the White House directive reads.

The hike applies to all trading partners except the UK, which inked a preliminary tradeagreement with the US last month. Tariffs on UK exports of the two metals will remain at 25% until at least 9 July to allow the two countries to resume negotiations.

The move will particularly impact Canada and Mexico, who rank first and third in steel export volumes to the US. Mexico has already indicated it will seek its own exemption from the increase. (Reuters | Bloomberg | New York Times | CNBC)

☀️ TOMORROW’S WEATHER- The weather throughout Eid is set to be consistent in the capital, with the peak being 35°C each day until Monday, which will see the mercury settle at 37°C. The weather at night will climb gradually from 21°C to 24°C throughout the break.

The North Coast will be seeing much cooler temperatures, with the daily highs reaching just 29°C except on Monday, which will see a warmer 32°C. The nights are consistently cool at 18-19°C, according to our favorite weather app.

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FOR YOUR COMMUTE

The dark side of AI flattery

The overlooked victims of AI: Artificial intelligence has everyone’s attention — reports on how AI is changing the corporate world continue piling up, academic institutions are scrambling to incorporate the technology into their curricula, and tech conglomerates are struggling to keep up with the rising AI adoption. So focused has the reporting been on AI’s economic contributions that a pivotal question remains unanswered: how will long-term interaction with a human-like language processing model impact our social behavior?

The AI-induced Messiah Complex. Earlier this week, 404 Media published a peculiar story with broad — and serious — implications. The tech publication reported that r/accelerate — a subreddit community dedicated to discussing AI advancements — has witnessed a notable increase in users exhibiting “schizophrenia-like symptoms” brought on by their interactions with language processing models like ChatGPT.

“LLMs today are ego-reinforcing [flattery] machines that reinforce unstable and narcissistic personalities to convince them that they've made some sort of incredible discovery or [...] become a god,” one of the subreddit’s moderators posted, noting that well over 100 such users have been banned from the community.

This isn’t an isolated incident. Many similar cases have surfaced online recently, the most notable being a Reddit post on r/ChatGPT where a user shared that her husband believed AI was giving him “the answers to the universe” — a belief that ultimately ruined their marriage. Rolling Stone reported in May several instances where individuals exhibited similar behavior after engaging in deep conversations with large language models (LLMs).

The psychology behind it: AI isn’t inherently malicious — it’s simply too accommodating. LLMs are designed to be agreeable, often functioning as digital sycophants that validate whatever users tell them. This creates a dangerous combination: AI systems that can greatly reinforce unstable beliefs, enable delusional behavior in individuals with personality disorders, and do so while sounding remarkably human-like. This proves particularly dangerous given the global loneliness epidemic taking root across societies, making more and more vulnerable people flock to AI chatbots.

The problem became so apparent that In April, OpenAI had to pull an updated version of GPT-4o that was excessively flattering. In shaping the model’s behavior, OpenAI “focused too much on short-term feedback,” without considering how users’ interactions would evolve over time, the company explained in a press release. This resulted in responses that were overwhelmingly supportive, but often disingenuous and untrue. The OpenAI replaced the update with a “more balanced” version, little has changed in practice — ChatGPT continues to affirm its users regardless of the validity of their statements.

You’re perfect, and you’re special. One of Rolling Stone’s interviewees — the author of the viral reddit post — said she discovered that ChatGPT had been addressing her husband as the “the next messiah,” which eventually culminated in his belief that he was God, according to Rolling Stone. She notes that this shift happened in a matter of weeks after her husband had begun using the AI to organize his daily schedule. Another interviewee said ChatGPT lovebombed her husband of 17 years. The concerned spouse claims that not long after the initial use, her husband began exhibiting abnormal behavior, discussing vague notions of the war between “lightness and dark,” and claiming that ChatGPT gave him the blueprints to a teleportation device and “ancient archives” that reveal the history of the universe and who “built it.”

A familiar pattern in digital form: This phenomenon isn’t entirely new, but it’s manifesting differently in the AI era. In his 2023 paper, “Will Generative Artificial Intelligence Chatbots Generate Delusions in Individuals Prone to Psychosis?” Søren Dinesen Østergaard — head of the research unit at Aarhus University Hospital’s Department of Affective Disorders — references prior cases of individuals becoming delusional following online conversations with other individuals affirming their beliefs. However, he argues that when engaging with generative AI chatbots, the risk for individuals prone to psychosis becomes significantly higher.

Østergaard attributes this increased risk to the unique realism that these chatbots offer while not actually being real. This paradox fuels the delusion further, especially when the chatbot listens without judgement and mirrors the user’s emotional state. The resulting cognitive dissonance makes the individual feel as though they’re solving a grand mystery that only they can decipher — a belief that can prove intoxicating and ultimately destructive.

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Under the Lamplight

Back in the arena

? Welcome to the 50th annual hunger games — the odds will definitely not be in your favor. Author Suzanne Collins makes a triumphant and timely return with the fifth installment — and the first novel in five years — in the The Hunger Games (THG) franchise. Sunrise on the Reaping (SOTR) may be a prequel to the main franchise, but not all is what it seems to be.

Writing between the lines. In a past interview with her publisher and editor David Leviathan for Scholastic, Collins noted that her writing exists to serve a certain purpose beyond mere fiction — to explore war theory, further emphasizing that she does not return to a story unless she has something new to say. In SOTR, Collins’ return to THG does not owe itself to fans’ incessant pleas for another prequel, but rather Collins’ desire to provide political commentary by way of fiction.

This isn’t Haymitch’s story — it’s a cautionary tale of what it means to not question the system. SOTR takes place 24 years before the events of the main trilogy, recounting the traumatic experience of Haymitch Abernathy — played by Woody Harrelson in the original film adaptation — as a tribute, and later on, victor — of the 50th hunger games, a special quarter quell where twice as many tributes were sent to fight to the death in the arena. As the pages turn, readers will be quick to realize that the events of SOTR do not entirely match what they’re told in the original trilogy, and that’s exactly what Collins intended.

When we say “propa-” you say “-ganda.” Sunrise on the Reaping shows the lengths a totalitarian regime will go to preserve its carefully-concocted image. Media manipulation only scratches the surface — and even the looming dangers of AI get a shoutout from Collins. While we cannot reveal any further information without spoilers, let’s just say you’ll want to re-read the original trilogy with a new perspective following your read of SOTR.

The novel moves fast, but its impact lingers. SOTR is quick-paced, first-person narrated, and to put it simply, a page-turner. Yet the underlying messages are ones that invite you to ponder and question much that you think you know. Whether you’re a devoted Hunger Games fan or simply looking for your next fictional literary adventure, Sunrise on the Reaping delivers more than what it promises to.

WHERE TO GET IT- You can find Sunrise on the Reaping at Diwan and The Bookspot, or you can purchase the ebook through Amazon.

This publication is proudly sponsored by

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Sports

Continental giants battle it out in the UEFA Nations League + more to watch during your Eid break

⚽ All eyes turn to Germany this week, where the UEFA Nations League semifinals take place between the continent’s giants: Germany and Portugal, and Spain and France.

In Munich, the Allianz Arena will be lighting up to host the first of the clashes at 10pm tonight between Germany and Portugal. Die Mannschaft qualified after an exciting 3-3 draw with Italy in the second leg of the quarterfinal, benefiting from their 2-1 away victory. Meanwhile, the Portuguese achieved a dramatic 5-2 victory over Denmark in the second leg, following a clean sheet defeat in the first.

Stuttgart will be hosting the Spain vs. France match at the MHP Arena tomorrow at the same time. The defending Spanish Matadors clinched the qualification after beating the Netherlands on penalties in the quarterfinals, the same scenario that saw Les Bleus advance against Croatia.

The final will see the winners meet at the Allianz Arena on Sunday, 8 June at 10pm, while the defeated teams lock horns in the third-place playoff on the same day at MHP Arena at 4pm.


The Matchday 15 South American qualifying matches for the 2026 World Cup will be kicking off early Friday morning and will continue until early Saturday. The top six teams will qualify directly to the finals, while the fight for seventh place will enter a global playoff.

Match details:

  • Ecuador vs. Brazil — Friday, 2am: The hosts sit in second place with 23 points, while the Samba dancers are fourth with 21 points, looking to return to winning ways after stumbling in the last round.
  • Paraguay vs. Uruguay — Friday, 2am: The teams are in fifth and third place respectively with the same points tally at 21.
  • Argentina vs. Chile — Friday, 4am: Tango leads the standings with 31 points, being the first to officially qualify, while the visitors languish at the bottom of the leaderboard with 10 points, but still have the chance to qualify.
  • Colombia vs. Peru — Friday, 11:30pm: The sixth-placed Colombia has 20 points, while Peru comes in ninth with 10.
  • Venezuela vs. Bolivia — Saturday, 1am: The hosts rank seventh with 15 points, with the visitors hot on their heels with 14 points.

The European World Cup qualifiers also continue with rounds three and four. The key matches we’re following are:

  • Norway vs. Italy — Friday, 9:45pm
  • North Macedonia vs. Belgium — Friday, 9:45pm
  • Gibraltar vs. Croatia — Friday, 9:45pm
  • Andorra vs. England — Saturday, 7pm
  • Finland vs. Netherlands — Saturday, 9:45pm
  • Italy vs. Moldova — Monday, 9:45pm
  • Croatia vs. Czech Republic — Monday, 9:45pm
  • Belgium vs. Wales — Monday, 9:45pm


The Egypt Cup final: Cairo International Stadium is hosting the Egypt Cup final between Zamalek and Pyramids tomorrow at 8:30pm. The White Knights defeated Ceramica Cleopatra with a 2-1 score in the semifinal, seeking to salvage the domestic season with a trophy after losing the Egyptian League as well as the Champions League qualifying spot and exiting the Confederation Cup.

Meanwhile, defending champions Pyramids earned their spot in the final with a big 4-0 victory over National Bank, entering the match buoyed by a historic achievement after being crowned CAF Champions League victors against the South African Sundowns. A successful campaign tomorrow will go down in the history books of the recently founded club.

The Egypt Capital Cup: The first legs of the semifinals will be kicking off tonight at 8pm, with the second legs scheduled for the same time on Sunday, 8 June. The matches will see Ismaily play against Ceramica Cleopatra, while National Bank locks horns with Enppi.

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OUT AND ABOUT

Beats by the beach in El Gouna

MARK YOUR CALENDAR-

☀️ Road-tripping to El Gouna this long weekend? Egyptian party and nightlife gurus Nacelle are bringing the beats to the beach with their Friends on Decks party in the heart of the Red Sea resort town. Egyptian DJs Awadly, Moenes, Joey, and Messery will be turning it up back to back on Sunday, 8 June. Passes can be purchased through Nacelle’s official website.

HAPPENING THIS EID-

Rock’n’rollers: Don’t miss out on celebrating 50 Years of AC/DC on Friday, 6 June at Mazeej Platform in Somabay, featuring the band’s original voice and co-founder Dave Evans hitting the stage. You can grab tickets on Tazkarti.

Ready to “Techno and Chill”? On Friday, 6 June at the New Administrative Capital’s Tolip Hotel, Egypt’s Orijins will be throwing quite the global techno gala. Malta-hailing techno pioneer The Element, London-based EDM artist Kasia, Italian DJ Toto Chiavetta, and Amsterdam-based DJ Vomee — alongside other local and regional talents — will be joining forces for a night you likely won’t be forgetting any time soon. You can secure your spot through Techno & Chill.

Are your dancing boots burnin’ up? On Friday, 6 June, CJC 610 will be taking us back in time with a nostalgic medley of our favorite noughties hits with a “Y2K: Dance Fever” throwback night. Curating the tracklist are none other than Waley and Bubblegum Kollectiv. You can secure your spot through CJC’s official website.

CJC 610 has quite the special night planned for you. On Saturday, 7 June, the nightlife hotspot west of Cairo will be hosting Egyptian band Black Theama, who’ll be bringing the jazz, the soul, and the Nubian rhythms. Joining them is Egyptian soft rock band Wust El Balad — led by actor and musician Hany Adel. Sounds like a night well spent? We’d agree — you can get your tickets from the official CJC website.

Let your funk flag fly in El Gouna this Eid with Funkside. On Saturday 7 June, Egyptian party gurus Funkside are celebrating Eid with an proudly-loud line-up of both regional and global talents at Cook’s Club El Gouna. Berlin-based artist Johannes Albert will be refilling El Gouna’s endorphins, joined by Cairene DJs Misty, F-Spins, and Tata. Tickets are available on Collard.

It’s almost beats by the beach season, and we’d suggest getting a headstart this Eid in Somabay. Debuting in Egypt, German electronic dance music trio Klangphonics will be joining Belgian synth-pop band Oscar and the Wolf for CJC’s Lumen party experience at Somabay’s Mesca Beach on Saturday, 7 June. Joining them with rhythms of their own are Cairo-based DJs Wolf Fang Midi, Dirty Backseat, and Zeft Funk. You can grab your tickets through Ticketsmarché. P.S. Don’t forget your favorite swimwear.

Free up your schedule on Saturday, 7 June and Sunday, 8 June for the second installment of the Makadi Heights Music Festival, taking place at The Haus in Hurghada. Cairokee will inaugurate the summer staple on the first day, while rap icons Marwan Moussa and Afroto wrap up the second. You can book your tickets for either or both days through Ticketsmarché.

Feinoh? Well, on Sunday, 8 June, Hisham Abbas will be amping it up at the beach in Ras Sudr at La Hacienda. Celebrating Eid El-Adha with a medley of his iconic hit songs, the veteran icon will be throwing a live concert for the first time in Ras Sudr. Tickets can be purchased through EasyKash.

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GO WITH THE FLOW

What the markets are doing on 4 June 2025

The EGX30 rose 1% at today’s close on turnover of EGP 3.7 bn (23% below the 90-day average). International investors were the sole net buyers. The index is up 9.9% YTD.

In the green: GB Corp (+7.3%), Beltone Holding (+6.1%), and Qalaa Holdings (+3.6%).

In the red: Egypt Aluminum (-2.5%), Eipico (-1.2%), and Orascom Construction (-0.7%).


JUNE

6 June (Friday): 50 Years of AC/DC concert.

6 June (Friday): Orijins at New Administrative Capital.

6 June (Friday): Y2K: Dance Fever at CJC 610.

7 June (Saturday): Funkside at Cook’s Club El Gouna.

7 June (Saturday): Black Theama and Wust El Balad at CJC 610.

8 June (Sunday): Nacelle’s Friends on Decks party in El Gouna.

8 June (Sunday): Hisham Abbas at La Hacienda.

7-8 June (Saturday-Sunday): Makadi Heights Music Festival at The Haus, Makadi Heights.

10 June (Tuesday): Comedy Hustle at CJC 610.

11 June (Wednesday): The Crowd Gigs at Theatro Arkan.

12 June (Thursday): Vidojean at Space Sharm.

13 June (Friday): Hamid El Shari at CJC 610.

19 June (Tuesday): Sainte Vie at CJC 610.

20 June (Friday): Tablet el Sitt at El-Sawy Culturewheel.

26 June (Thursday): Jeff Dunham at the New Capital’s Drama Hall.

26 June (Thursday): Lena Chamamyan at Theatro Arkan.

27 June (Friday): Medhat Saleh at Cairo Opera House.

28 June (Saturday): Cairokee Empire concert at Cairo International Stadium.

JULY

4 July (Friday): Amr Diab, Monolinkand WhoMadeWho at Sol Beach Marassi.

19 July - 30 September (Saturday - Tuesday): Art Space at New Alamein.

AUGUST

6-30 August (Wednesday - Saturday): Egypt Sculpture Symposium at New Alamein.

8 August (Friday): &ME at Sol Beach.

OCTOBER

16-24 October (Thursday-Friday): Gouna Film Festival.

30 October - 22 November (Thursday-Saturday): Forever is Now at the Great Pyramids of Giza.

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